What You Need to Know About White Label CBD
Anywhere you turn in the alternative health market today you are going to hear someone extolling the advantages of CBD. This amazing herbal compound has been making quite a splash on the social media scene for many years. While some consider it just “hype”, the truth is that CBD is here to change the way we view natural medicine and the cannabis plant.
Recent changes in legislation have led to some great advances in the way we look at this amazing product. Today this has led to a market explosion of CBD products in every way, shape and form. The CBD market has attracted a new wave of entrepreneurs with industrious minds and innovative ideas.
But, despite coming from one of the oldest cultivated crops in the book, the CBD market is still very new. There are many unexpected truths about the CBD industry. “White Labeling” is a common industry practice that anyone in the cannabis or CBD market should know about. It is a good solution to overcoming production challenges by getting straight to the marketing and logistics of the issue.
What is “White Labeling”?
When a product carries the brand of a business other than its original producer, the product has been “white labeled”. The producer who creates the product will allow the marketer to place whichever brand they choose on the product. This is a practice used extensively throughout the CBD industry.
The brand of the seller is very important in this practice. It also allows highly-respected manufacturers to be accessed through a different seller. White labeling also removes some of the pressures of safety, licensing and health code regulations from the operations of the seller when they are marketing these products.
Because most small startups lack the capacity to launch a large scale production of CBD products, the only alternative would be small scale production or white labeling. Because consistency and product quality can be dicey in a small scale operation, white labeling is often the best solution to getting a CBD startup up and running.
White label products are created for the seller company by a different manufacturing company. The seller has the right to label the products as they see fit and resell them. They can use their own brand and labels that fit their marketing structures and make the connection to the consumer. The consumer will naturally think the company behind the labels and logos is the actual producer. But, the products were actually produced by another company and sold to the seller as a white label product.
What are the Benefits of White Labeling?
There are several important benefits that can come from white labeling. By using white labels, you can skip the production phase and get right into the selling and marketing that builds your business. Many startups have been fascinated by this business model as a suitable alternative to reselling other CBD brands.
White labeling will allow you to begin building your own brand and making a name. By selling these products you will be attracting consumers to your options and identifying yourself as a reputable supplier. This will allow you to begin to establish your operations in a tricky market and build a reputation with your customer base. You will also be able to maintain that consistency which is very difficult to attain producing your own CBD products.
This way by the time you get to market your own products, you will have already built a name for yourself with your target audience and working with a large consumer pool. This removes some important obstacles between you and your establishment in the market.
You will also have the freedom to adjust your pricing structures when setting up your brand of CBD products. This will allow you to fine tune your efforts to attract the attention of a specific market. If you were to try this will well-established brand names you will face a great series of obstacles. For example, you will have to keep your prices within their RRP (Recommended Retail Price), or you may not be able to work with them anymore.
How Does White Labeling Work?
You will not be bound to any external authority when you work with a whit label producer. This keeps you from having to commit to stringent terms and conditions. You will be allowed to apply your own labels and use the pricing range that best suits your needs..
Because you will be working with experienced producers you will be able to ask for a product that suits your market perfectly without having to enter the R&D phase of such a project. You simply ask for a CBD product with the CBD percentage or whatever other specifics you believe your market would find attractive and – voila. It will be on the markets by Monday!
You will find that different arms of the CBD industry have different regulations for labeling their products. Some of these may fall under the category of cosmetics while others will fall under the category of food products. Your producers will be able to help you get the labeling just right and help you out if you have any other questions about the products you market.
Choosing a White Label Producer
Because it will be your business name the consumer sees, you will want to ensure that your products come from producers of the highest quality and professionalism. Poor quality products will definitely impact your reputation with your target market. An inexperienced or unscrupulous manufacturer may provide misleading product labels that can place you in a very bad position. You may even risk litigation by choosing the wrong manufacturer.
Nevertheless, by choosing the right manufacturer, with a professional approach and top-quality product, you will receive all the benefits mentioned here.